IEPPE Exam Dumps : Internationally Educated Professional Practice Exam

Non est factum(Latin for"it is not my deed") is a legal defense used whena person signs a contract but did not understand its nature due to a fundamental mistake.

Step-by-Step Explanation:

Definition of Non Est Factum–

Applies whena person unknowingly signs a contract that is entirely different from what they intended to sign.

The personmust prove they were not carelessin signing it.

When Is It Used?

Used byindividuals with disabilities (e.g., blindness, illiteracy)who were misled about the contract’s nature.

Why Option D Is Correct:

The doctrineprotects individuals who genuinely did not understandwhat they were signing.

Why Other Options Are Incorrect:

A (Unsound mind)– People withmental incapacitymay use a different legal defense.

B (Alcohol or drugs)– Being intoxicateddoes not automatically invalidate acontract.

C (Corporations overstepping charters)– This involvescorporate law, not non est factum.

Awidely-held corporationis a company whose shares arepublicly traded on a stock exchangeand areavailable for purchase by the general public.

Step-by-Step Explanation:

Definition of a Widely-Held Corporation:

A corporation withmany shareholders.

Shares arepublicly traded on stock exchanges(e.g., TSX, NYSE).

Characteristics:

Subject tosecurities regulationsto protect investors.

More transparency requiredin financial reporting.

Why Option B Is Correct:

Key feature: Shares can bebought and sold on a designated exchange.

Why Other Options Are Incorrect:

A (Many shareholders)– Not all large companies are publicly traded.

C (Shares not available to public)– Describes aprivately-held corporation.

D (Few shareholders)– Applies toclosely-held corporations.

Amistake of lawgenerallydoes not allow a contract to be set aside, becauseparties are expected to know the law.

Step-by-Step Explanation:

Types of Mistakes in Contracts:

Mistake of fact– Canvoid a contractif fundamental.

Mistake of law–Does not usually void a contract.

Why Option B Is Correct:

Courts assume thatindividuals understand the law before signing a contract.

Why Other Options Are Incorrect:

A, C, D – Mistakes of factcan void contracts.